noun a tax deduction that allows businesses to account for the reduction in value of natural resources as they are extracted or used up
In accounting, depletion allowance refers to the deduction allowed to mining and oil companies for the depletion of natural resources.
In taxation, depletion allowance is a tax deduction granted to businesses for the depletion of natural resources used in their operations.
In mining, depletion allowance is an important concept for calculating the cost of extracting minerals from the ground.
Depletion allowance is relevant in the field of natural resources as it pertains to the calculation of the depletion of oil, gas, minerals, and other resources.
Depletion allowance is commonly used in the oil and gas industry to account for the reduction in reserves over time.
Depletion allowance is applicable in the energy sector, particularly for companies involved in the extraction and production of natural resources.
A writer may use a depletion allowance to deduct a portion of their income related to the depletion of natural resources used in their work, such as paper or ink.
A psychologist may use a depletion allowance to deduct expenses related to the depletion of resources used in their practice, such as office supplies or equipment.
An oil and gas producer may use a depletion allowance to account for the reduction in the value of their oil and gas reserves over time due to extraction.